Special Service and Features
25.5% growth in Income Tax net collection compared to the last year
Tamil Nadu & Puducherry Region is one of the most urbanized states in the Country. The Region had a modest direct tax collection of Rs. 1,108 Crores in the F.Y. 1991-92. We clocked a gross collection of Rs. 1,01,499 Crores in the last F.Y.  for the first time; and had a net collection of Rs. 90,108 Crores. there is a growth of 27.23% in gross collection observed this year. Tamil Nadu & Puducherry Region has been the 4th largest contributor of exchequer for the last more than 10 years. Budget target allocated for Tamil Nadu & Puducherry Region for the F.Y. 2022-23 is Rs. 1,08,200 Crores. This is 33 % more compared to the last year budget target of Rs. 81,000 Crores. In terms of percentage growth compared to last year collection, TN&P Region stands at 4th position. The net collection till date is Rs. 80,480 Crores. Compared to the last year net collection of Rs. 64,102 Crores , there is a growth of 25.5% in net collection observed this year. The net collection for the financial year 2021-22 was Rs. 90,180 Crores. Out of this, TDS collection was Rs. 47,977 Crores . The current year TDS collection till date is Rs. 47,313 Crores which shows a growth rate of 27% 
Tax Deducted at Source  is akin to “Pay as You Earn” which provides regular inflow of revenue to the Government exchequer. It is a smooth and efficient way of collecting taxes. It also creates an audit trail for those who have taxable income.
Presently, TDS contributes 50% of total tax collections on All India basis. In Tamilnadu & Puducherry region, the TDS charges at Chennai and Coimbatore have contributed to 54% of the total Net Tax collections during the F.Y. 2021-22. For the FY 2022-23 , TDS/TCS collections made are to the extent of Rs. 38,817 Crores and are growing at an impressive rate of 41% compared to last year.
Tax is deductible/collectible on various payments and there are more than 30 types of payments that attract TDS/TCS such as Salaries, Rent, Commission, Interest, Contracts, Professional services, Purchase of goods in auction, Purchase of immovable property, Cash withdrawals from Banks, E-commerce transactions, etc. Such tax deducted/collected at source is to be deposited by the deductors into the Central Govt. account within the stipulated dates, usually by 7th of the succeeding month. Further they also have to file the Quarterly TDS statements mentioning the Tax Deduction and Collection Account Number , details of payments, tax deducted and remitted, etc., deductee-wise, so that the tax credits can be claimed by the deductees in their Income-tax returns.
Considering the importance of TDS as a mode of collection of taxes it is imperative that the various provisions and rules have to be properly complied with. In this regard, department conducts various programs in the form of Outreach and Corporate Connect Programs to spread the awareness about TDS/TCS provisions and compliance with the same.
A total of 193 programs have been organised across various regions of Tamilnadu and Puducherry since September 2021 covering various sectors such as Commercial Banks, Co-operative Banks, Manufacturers, Real estate, Software industry, Pharmaceutical industry, Nidhi Company and Government deductors.
In order to check the TDS compliances, the department also carries out e-verifications and Survey actions u/s. 133A of the Income Tax Act, 1961. For the FY 2021-22 and 2022-23, a total of 124 surveys have been carried out covering different sectors like Co-operative Banks, Manufacturers, Real estate, Software industry, Media, Logistics and Government deductors which have resulted in detection of TDS defaults of Non-remittance/Non-deduction to the tune of Rs. 245.89 Crore.
If Tax is not deducted/collected within the specified due date, interest @ 12% p.a. is leviable and will also attract Penalty of an amount equal to the TDS/TCS failed to be deducted/collected. In cases of Non-remittance of TDS/TCS, interest @18% p.a. is payable and the deductor would also be liable for Prosecution u/s. 276B/276BB of the Income Tax Act, 1961 attracting punishment of imprisonment from 3 months to 7 years along with fine. The department has identified large number of cases where such offences of serious TDS violations were noticed and Prosecution proceedings have been initiated. The Income Tax Act also provides for a scheme of compounding of offences subject to satisfaction of certain conditions.
The Income Tax Department , Chennai has obtained seven convictions in the financial year 2022-23  on the prosecution proceedings initiated by it against the tax defaulters in respect of the various offences committed under the Income Tax Act, 1961.
- subject matter of conviction ranges from - failure to file ITR, evasion of income chargeable to tax, false declaration in the ITR filed, to failure to pay the outstanding tax arrears. As a result of the convictions carried out during the FY 2022-23  nine persons have been sentenced to imprisonment for periods ranging from a minimum of 3 months to a maximum of 2 years apart from the total fine levied of Rs.9,70,000/-.
A Press Meet was addressed by Shri R. Ravichandran, I.R.S., Principal Chief Commissioner of Income Tax, Tamilnadu & Puducherry in the presence of Shri M. Rathinasamy, I.R.S., Chief Commissioner of Income Tax , Chennai and other senior Officers of Income Tax Department Chennai requesting the Tax Deductors to comply with TDS provisions and contribute to the development of the Nation.